As falling rupee hits earnings from tourists, govt eyes easy visas

NEW DELHI: An average 7% growth in foreign tourist arrivals — nearly double the average 3.9% growth of foreign tourists worldwide -- should have had the government cheering. Instead, the low rupee-dollar exchange rate has resulted in "dollarless growth'' with foreign exchangeearnings dipping to negative in the last two months.

Don't use currency notes for making garlands: RBI

MUMBAI: Making garlands of currency notes, a practice followed in Indian marriages and political rallies, has been sought to be discouraged by the Reserve Bank of India.

"The Reserve Bank of India has appealed to members of public not to use banknotes for making garlands, decorating pandals and places of worship or for showering on personalities in social events, etc," an RBI release said on Wednesday.

Such actions, it said, deface the banknotes and shorten their life.

Rupee to touch 60

MUMBAI: The currency tide has turned in spectacular fashion. Asia's worst performer until last week, the rupee has become the world's best performer in the past five days as investor confidence has surged following a series of steps to boost inflows and the receding likelihood of a US strike on Syria.

The local currency had its best four-day rally in four decades after Reserve Bank of Indian Governor Raghuram Rajan moved to reverse sentiment on policymaking, introducing several measures soon after taking over last Wednesday. Liberal fund-raising rules for banks and exchange risk cover for NRI deposits are estimated to draw about $20 billion in the next few weeks.

The rupee's slump below 60 to the dollar was a "capitulation trade which clearly was overdone", according to Alok Agarwal, CFO at Reliance IndustriesBSE -0.15 %. "The rupee's reversal should take the same path — a move up to 63 against the dollar, with relief and confidence coming back and then a slower appreciation to 60 as the emerging markets steady themselves after the Fed's plans on tapering are known at next week'sFederal Open Market Committee meeting."

The rupee gained 2.2 per cent from Fri
day's level to 63.84 to the dollar. It's the best performer in the past five days among the 189 currencies listed on the Bloomberg table. The rupee strengthened past 64 for the first time since August 26 to as high as 63.76, Bloomberg data shows. The currency touched an all-time low of 68.84 on August 28.

From the worst to the best performer: Rupee to touch 60 as Raghuram Rajan reverses sentiment

MUMBAI: The currency tide has turned in spectacular fashion. Asia's worst performer until last week, the rupee has become the world's best performer in the past five days as investor confidence has surged following a series of steps to boost inflows and the receding likelihood of a US strike on Syria.

Rupee up 140 paise at 63.84 vs dollar as Syria strike fears fade

MUMBAI: The rupee on Tuesday closed above the 64 mark at 63.84 against the dollar, up 140 paise -- the biggest in two weeks -- as fears of a US military strike on Syria eased amid lower global oil prices.

Banks and exporters preferred to reduce their dollar positions on expectations of additional foreign fund flows into the equity market.

The rupee resumed higher at 64.40 a dollar from Friday's close of 65.24 and touched a low of 64.54 at the interbank foreign exchange market. It later bounced back to breach the 64 mark and touch a high of 63.78 before settling at 63.84, a rise of 140 paise or 2.15 per cent.

Rupee gains 99 paise, jumps to 64.25; sensex soars 506 points

MUMBAI: The rupee continued to rule firm for the fourth straight day by surging further by 99 paise to 64.25 per dollar on persistent selling of US currency by banks and exporters in view of sustained foreign capital inflows on the back of strong equity market. 

The rupee resumed higher at 64.40 against the last weekend's level of 65.24 per dollar at the Interbank Foreign ExchangeMarket and moved up further to 64.15 before quoting at 64.25 per dollar at 10.40am 

It moved in a range of 64.15 per dollar and 64.45 per dollar during the morning deals.

Payback time: N-deal for US

NEW DELHI: India will put its money where its mouth is. Battling widespread criticism in Washington that it pocketed a game-changing nuclear deal for free, India will sign a "commercial contract" for a small works agreement with Westinghouse, the only US nuclear company with any declared plan to set up nuclear power plants in India. The nuclear contract, for a modest sum of under $100 million, is expected to be signed between NPCIL and Westinghouse during the visit of PM Manmohan Singh to Washington later this month. While the deal is largely symbolic, it's a sign from India that it will try to walk the talk on welcoming nuclear reactors by US companies. They have refused to invest in the Indian nuclear sector because of concerns about India's nuclear liability law. The Indian government has so far maintained the law should not be a deterrent, but there are no takers in US or other countries for that argument. To that extent, this agreement would be seen as a statement of intent by India, certainly a PM who considers the nuclear deal to be his greatest legacy. Quite apart from the nuclear issue, it's clear the Barack Obama administration has taken India off the radar. During the initial discussions on Singh's visit, the White House, said sources, did not even offer a lunch meeting between Singh and Obama. Instead, a lunch with vice-president Joe Biden was put on the table. India refused. It was only later that the US side agreed to a meal to be shared by the two leaders. Last week's appointment of Rakesh Sood, an acknowledged expert nuclear negotiator, as PM's special envoy on nuclear matters is also seen as an effort to roll back the damage. According to PMO insiders, the appointment was made directly by the PM completely bypassing the MEA, which holds the nuclear policy account. The PM's visit will also be in the background of military strikes on Syria, which could have happened by the time he's there or about to happen. Whatever it is, Syria will be top of mind for everyone in DC, not to speak for Obama himself. The visit is important for Singh, who is looking at securing his legacy on the nuclear front. After he pushed the deal through Parliament in 2008, Singh has allowed the nuclear dossier to be preyed on by the atomic energy bureaucracy, effectively killing the deal. In the last year, the India-US relationship has been about bureaucrats on both sides blaming each other, while the relationship ran aground. 

Raghuram Rajan effect: Rupee at two-week high, sensex above 19,000

MUMBAI: Rupee on Friday jumped 77 paise to 65.24 andsensex soared by 290 points to scale the 19,000-mark on continued hopes triggered by new RBI governor Raghuram Rajan's steps to push in more reforms in the financial sector.

Markets cheered the slew of proposals by Rajan, aimed at strengthening rupee and reviving growth, for the third straight day as investors appeared bullish.

Against Thursday's close of 66.01, the rupee on Friday ended at 65.24 -- the highest level in nearly 2 weeks -- on heavy dollar selling, capital flows and weak American currency overseas.